Executive Summary
Bait Saver Hooks
Bait Saver Hooks is a new company that will take the fishhook industry by storm. Bait Saver
Hooks provides customers with a patented new hook design that will not sling a fishermanÊbait off of their hook. Bait Saver Hooks is scheduled to begin operations on March 2, 2018. Bait
Saver Hooks will be started as a sole proprietorship, owned and operated by Amber Dills.
Bait Saver Hooks will begin the business by providing our hooks in a wide array of sizes. The
long-term goal is for Bait Saver to manufacture a large variety of products that can be used by
the entire fishing industry. Such products include jug reels, a sinker that will come to the top of
the water, an in-line swivel which will ensure that a fishermanàplug and fishing line stay in a
straight line while in the water and lastly, a no-roll sinker which will keep a fishermanàsinker
from rolling in debris on the bottom of the river, lake, pond or ocean.
Bait Saver Hooks will seek to do business with major hunting and fishing companies. When Bait
Saver initially opens, it is a goal to have our hooks first infiltrate fishing stores, marinas and
fishing demonstration tours around our manufacturing facility in St. Augustine, Florida. Once
sales have reached a level where the business starts generating profits, then the company will
seek to pursue the testing and development of the additional products mentioned previously.
In 2014, the United States fishing industry contributed approximately $90 billion to the
economy. Out of this total, almost $59 billion was due to commercial fishing and an additional
$30.4 billion was due to recreational fishing. The fishing industry employees approximately
463,640 individuals in the state of Florida alone. This total is equal to 1.2% of the state
employment.
The fishing industry, within the last 5 years has seen a slow decrease in revenue due to a
decline of domestic seafood prices. However, by 2022, the fishing industry is expected to return
to growth. Once this growth has happened, the fishing industry is expected to remain stable for
future years. Factors that will contribute to this growth are, the high demands for Asian
countries which will make fishing an export-driven industry and the global demand for seafood
is forecast to increase due to population and income growth.
Bait Saver Hooks knowledge of the fishing industry as well as the awareness of the
requirements for the most common and popular forms of fishing will make Bait Saver a large
competitor to other businesses.
Bait Saver Hooks will be set apart from all other fish hook manufacturing companies due to an
increased knowledge of the fishing industry by the owner. A centralized location of distribution
for the business during the early stages, and then expanding the availability of the product
throughout other large distribution chains will help the business reach the full market
possibility and expand the products offered in this market.
The business goals of Bait Saver Hooks within the first year of business is to achieve $350,000 in
sales, which will lead to a net income of $25,000 for the business. In the second year of
business, Bait Saver projects doing $700,000 in sales, which will equal a net profit of $150,000.
Once Bait Saver reaches the ability to pay back all of the amount that was initially loaned to
start the business, which will be at approximately year 4, Bait Saver will then seek to start
investing in the development of new products.
It is not until the fourth year of business that Bait Saver plans to reach a point of breaking even.
In the years following, Bait Saver will have the ability to become more profitable due to having
an established clientele and contracts.
The amount being requested for the start-up expenses of this business includes: capital
$100,000, $300,000 in manufacturing and production, $50,000 for advertising and $150,000
towards first years3alaries. Capital funds provided will be the set aside as the sole working
capital for the business during the first year.
Advertising amounts include the cost of travel expenses required to attend trade shows or
fishing expos so that the hook can be displayed to potential clients. The money allocated
towards the first yearàsalaries will be utilized to hire the appropriate staff needed to run the
manufacturing business, as well as all office requirements such as an accountant.

Purchase answer to see full
attachment